Are you extracting all possible revenue and value from your practice?
Ophthalmology practices face many challenges to achieve revenue growth year-over-year while also delivering high-quality care to patients. Once the “low-hanging fruit” has been tackled, such as owning your own ASC, employing associate doctors and providing optical services, it becomes harder each year to increase revenue, beyond increasing patient volume for the traditional services you offer. Every aspect of the practice plays a crucial role in driving sustainable growth. Some approaches are more obvious than others.
Here are actionable strategies and tactics for your practice to bolster revenue streams.
1. IMPACT OF LEADERSHIP ON REVENUE GROWTH
Leadership sets the tone for the entire practice and plays a pivotal role in driving revenue growth. Strong leadership fosters a culture of accountability, innovation and continuous improvement. By cultivating a cohesive team environment where every member is aligned with the practice’s goals and objectives, leaders can inspire productivity and enhance patient satisfaction. Effective leadership includes fostering relationships with referring doctors and leveraging networking opportunities to expand the practice’s referral base.
2. STRENGTHENING MANAGEMENT SKILLS AND IDENTIFYING SKILLs GAPS
Effective management is the cornerstone of a thriving ophthalmology practice. Practice managers and administrators must possess strong leadership and organizational skills to streamline operations and maximize efficiency. Conducting regular assessments to identify skills gaps among staff members allows for targeted training and development initiatives. Investing in management training programs can empower leaders within the practice to effectively navigate challenges and capitalize on opportunities for growth.
Busy practices often fail to recognize skills gaps and understand the impact of having a manager who is burned out, resistant to change or stuck when action is needed.
Skills gaps can be improved with education and coaching. Managers who are drowning in work and can’t find their way out need more assistance or a reassignment. Do not underestimate the impact of an overburdened or under-skilled management team on your practice’s success.
3. DATA MINING FOR PATIENT VOLUME INCREASES
Data mining is a powerful tool for practices seeking to boost patient volume and revenue. Analyzing patient demographics and referral patterns provides valuable insights into market trends and patient preferences. It’s also a great way to determine which patients have not been seen in the practice in the last year or two.
Identify those patients (by CPT and diagnosis code) with higher needs. Focus on clinical and risk management priorities, eg, diabetic retinopathy, glaucoma, status-post cataract patients who have been lost to follow-up. It is easier and less costly to retain your patients than to attract new ones. And it is better patient care.
By leveraging your in-house practice management system analytics tools, you can identify untapped market segments, personalize marketing efforts and optimize appointment scheduling to accommodate patient demand effectively. Data-driven decision-making enables practices to allocate resources efficiently and prioritize strategic initiatives for this segment revenue growth.
4. REVIEW STAFF COSTS AND OPTIMIZATION
Although this article focuses on revenue enhancement, which is the best path to profit enhancement, we can’t ignore the importance of controlling expenses.
Staffing costs represent a significant portion of the operational expenses for ophthalmology practices. Normal staffing cost outlays are 28-34% of net collections.
Conducting a comprehensive review of staffing levels, compensation structures and productivity metrics is essential for optimizing costs without compromising quality of care and patient satisfaction. In addition to controlling staffing costs, implementing performance incentives and workflow optimization strategies can enhance staff efficiency and productivity.
5. SPECIFIC WAYS TO MAXIMIZE REVENUE
Expand services
Offer a comprehensive range of services, including routine eye exams, specialized diagnostics, surgical procedures, retinal injections, optical services and cosmetic treatments. Only a few years ago, Botox injections were left to the practices offering full-service aesthetic services. It is becoming more accepted, and perhaps even expected in some locations, that practices offer Botox as a convenience while they are in the office.
Enhance patient experience
Focus on providing exceptional patient care by ensuring shorter wait times, offering convenient appointment scheduling options, providing comfortable reception areas and training staff to be friendly and knowledgeable.
Leverage technology
Invest in state-of-the-art equipment and technology to improve diagnostic accuracy, treatment outcomes and patient satisfaction. This may include advanced imaging systems, laser technology, or dry eye treatments (eg, intense pulsed light, serum tears).
Optimize appointment scheduling
Implement efficient scheduling practices to maximize patient volume without compromising on customer service (eg, waiting time) and quality of care. Prioritize being able to accommodate urgent cases and surgery consults promptly.
Expand referral networks
Strengthen relationships with primary care physicians, optometrists and other health-care providers to increase referrals. Provide educational materials and outreach programs to promote awareness of your services among referring professionals.
Personalize marketing efforts
Develop targeted marketing campaigns tailored to specific patient demographics and presenting conditions. Use digital marketing channels such as social media, email newsletters and search engine optimization to reach potential patients effectively. How much to spend in this area will be dependent on the size and scope of your practice and the pace of local competition, but 2% of your annual collections is a reasonable baseline in most settings.
Optimize revenue cycle management
Streamline billing and coding processes to minimize claim denials and maximize reimbursement. Regularly review coding practices to ensure compliance with billing regulations and to maximize revenue capture.
Even if you have a great outsourced billing service or a billing department that you admire, as the administrator or managing partner of your practice, make the time for more oversight in this area. Are the open claims over 90 days less than or equal to 12% of the total A/R? Is the practice satisfied with the collections company and write-off policies? Is your net collection ratio 95% or higher? Are refraction fees collected at the time of the visit and not billed for later? There are many ways to tighten billing practices that can be innocently overlooked when the revenue already looks good.
Implement cost-effective inventory management
Efficiently manage inventory levels for optical products and retinal and Botox injections to minimize carrying costs and reduce waste or loss. Negotiate favorable pricing with suppliers to improve profit margins.
Rewards programs, if managed well, can be significantly beneficial. However, these programs are time-consuming and challenging to perform well. In most cases, the administrator is not the right person to assign these kinds of tasks. You need an experienced, motivated person that has time to monitor the whole program — from ordering, usage and waste to the billing and collections process.
Continuing education & training
Invest in ongoing education and training for doctors and support staff to stay updated on the latest advancements in eye care and to enhance clinical skills. This enables the practice to offer cutting-edge treatments and attract patients seeking specialized care.
Community engagement
Participate in community events, health fairs and outreach programs to raise awareness of eye health issues and to promote the practice’s services. Building strong relationships within the community can lead to increased patient loyalty and referrals.
CONCLUSION
Your practice will excel if you can resist complacency and inaction, and embrace change. Proactively identifying areas for enhancement, whether in service delivery, patient experience or operational efficiency, allows a practice to remain competitive and financially viable. OM
